Updated: Apr 5
DATE: Monday, March 30, 2020
SUBJECT: VSLT MOA and Q&A
A lot of people have been reaching out to the union with very important question. We ask that you carefully review this Q&A on Voluntary Short Term Leave (VSTL) along with the emails the company has sent, to help clarify the program. We have also included the Memorandum of Agreement (MOA)-VSTL in this email, please read through it carefully before making your decision.
UNION Q&A on VSTL MOA
Q: If I don't want CCL or VSTL, is there any action required from me?
A: No action is required.
Q: If I take the VSTL, does that increase my chance of being furloughed?
A: No. Furlough is covered in section 27 of our CBA and is determined by seniority.
Q: Is the company planning to furlough?
A: If they receive grant money from the stimulus package, they are prevented from furlough until September 30th 2020. In addition, the company has not indicated to the union their plans to furlough. At this time, all communication about the subject is pure speculation.
Q: Is the company going to take the stimulus package?
A: As of today, they have indicated that they have not decided if they will take the loans but intend on taking the grants.
Q: If I take the VSTL/CCL, can I apply and receive Underemployment or Unemployment?
A: Unemployment is decided by the state you live in and every state has different rules. Many airlines are offering some form of paid /unpaid leave and some have indicated they will not contest employees claims for unemployment. However, even if your employer does not contest your claim, the individual state still decides if you qualify. Allegiant Air has not stated if they will or will not contest underemployment claims for voluntary leaves and are still determining how that decision may be impacted by the stimulus package.
Q: Will I get my hours as awarded in April?
A: Yes. How you are paid in April has not changed. The CBA covers PPSK for the tri(s) or hours flown.
Q: How many VSTL/CCL will be awarded?
A: The company has indicated that due to the dramatic drop in flying there will be plenty of availability. Your opportunity is the same to receive a leave regardless of selecting VSTL or CCL they come from the same bucket
Q: If I apply and awarded VSTL/CCL for April, do I also get my full pay for April?
A: No. By electing to participate in CCL or VSTL, you are forfeiting your scheduled block for April 2020.
Q. If I am awarded VSTL, how does that impact my benefits?
A: While on VSTL, you keep your benefits. The company will continue to pay all employers portion of your benefits. You are still responsible to cover your portion of the benefits deductions you selected that you normally get deducted from your payroll.
Q: Is there a difference in federal tax rate(s) between CCL and VSTL?
A: If incentives are offered in CCL awards, you are taxed on 30%, typically like a bonus. VSLT will be payed out as regular hourly pay and will be taxed as payroll.
To View the VSTL MOA, Please visit TWU Local 577 COVID-19 Response Page